/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES./
CALGARY,
AB, Nov. 29, 2024 /CNW/ -
Simply Solventless Concentrates Ltd. (TSXV: HASH)
("SSC") is pleased to announce the appointment of
Tairance Rutter to the position of
Vice President, Marketing & Product Development with SSC. SSC
is also pleased to provide Q4 2024 guidance, including record
projected gross revenue, adjusted EBITDA and normalized net income,
and the graduation from TSXV Tier 2 to TSXV Tier 1 status.
This press release amends and restates in its entirety the press
release issued by SSC on November 28,
2024 due to administrative errors in the annualized Q4 2024
adjusted EBITDA figure and annualized Q4 2024 normalized net income
figure provided in the November 28,
2024 press release.
Appointment of Tairance Rutter
as Vice President, Marketing & Product Development
SSC is thrilled to announce the appointment of Tairance Rutter as SSC's Vice President,
Marketing & Product Development, supplementing his current role
as President of ANC Inc. ("ANC"), a wholly owned subsidiary
of SSC acquired on October 18,
2024.
Jeff Swainson, President and CEO
of SSC, stated: "Tairance has done an incredible job as ANC's
President, and he is already elevating SSC's capabilities company
wide. SSC has a culture of meritocracy and Tairance's appointment
was an easy decision for our team."
Q4 2024 Quarterly Guidance
SSC projects record quarterly gross revenue during Q4 2024 of
approximately $11.8 million (Q3 2024
- $7.2 million, Q4 2023 -
$1.8 million), representing growth
rates of 64% quarter over quarter and 556% compared to the same
quarter last year. SSC's projected revenue growth is attributable
equally to the organic growth of SSC's brands Astrolab,
Frootyhooty, Lamplighter, Roilty, and Zest, and to SSC's
acquisitions of CannMart and ANC.
SSC projects Q4 2024 adjusted EBITDA of approximately
$2.75 million (Q3 2024 - $1.0 million, Q4 2023 - $0.1 million) (see Non-IFRS Financial
Measures, below), representing growth rates of 175% quarter
over quarter and 2,650% compared to the same quarter last year.
SSC projects Q4 2024 normalized net income of approximately
$2.6 million (Q3 2024 - $0.9 million, Q4 2023 - $0.05 million) (see Non-IFRS Financial
Measures, below), representing growth rates of 189% quarter
over quarter and 5,100% compared to the same quarter last year.
SSC projects Q4 2024 net income of approximately $2.55million (Q3 2024 - $0.4 million, Q4 2023 - $0.1 million), representing growth rates of 538%
quarter over quarter and 2,450% compared to the same quarter last
year.
SSC's streak of positive adjusted EBITDA and normalized net
income is expected to extend to ten and eight quarters
respectively.
Q4 2024 Annualized Guidance
SSC projects record annualized Q4 2024 gross revenue of
approximately $47.2 million (Q3 2024
- $28.7 million, Q4 2023 -
$7.2 million), representing growth
rates of 64% quarter over quarter and 556% compared to the same
annualized quarter last year.
SSC projects record annualized Q4 2024 adjusted EBITDA of
approximately $11.0 million (Q3 2024
- $4.0 million, Q4 2023 -
$0.4 million) (see Non-IFRS
Financial Measures, below), representing growth rates of 175%
quarter over quarter and 2,650% compared to the same quarter last
year.
SSC projects annualized Q4 2024 normalized net income of
approximately $10.4 million (Q3 2024
- $3.6 million, Q4 2023 -
$0.2 million) (see Non-IFRS
Financial Measures, below), representing growth rates of 189%
quarter over quarter and 5,100% compared to the same quarter last
year.
SSC projects annualized Q4 2024 net income of approximately
$10.2 million (Q3 2024 - $1.6 million, Q4 2023 - $0.4 million), representing growth rates of 538%
quarter over quarter and 2,450% compared to the same quarter last
year.
Mr. Swainson continued: "Q4 2024 is shaping up to be another
banner quarter for SSC with strong growth across all key metrics,
including revenue, adjusted EBITDA, and normalized net income, and
the closing of the ANC acquisition on October 18, 2024. Marking our third highly
accretive acquisition of the year, ANC is providing immediate
value, which edifies our strategy focused on opportunistic
acquisitions, and coupled with our strong organic revenue growth
and exceptional execution capability, we find ourselves with a
highly effective platform for continued growth as we enter 2025. I
thank our entire team for their incredible ability to drive our
notable value creation thus far in 2024."
Continued Rationalization and Cost Savings
The figures above include the operations of SSC and its
subsidiaries Massive Hash Factory Ltd., CannMart Inc.
("CannMart") (acquisition closed September 12, 2024), and ANC (acquisition closed
October 18, 2024). SSC is
continuing to capture synergies in respect of these acquisitions,
the intent of which will further reduce expenses during Q1
2025.
Past Guidance Versus Actuals
SSC provided guidance in Q2 2024 and Q3 2024 and it has exceeded
guidance in each of these quarters. A comparison of SSC's
guidance to reported amounts are as follows:
Quarter
|
Gross
Revenue
Guidance
|
Reported
Gross
Revenue
|
Adjusted
EBITDA
Guidance(1)
|
Reported
Adjusted
EBITDA(1)
|
Net Income or
Normalized
Net Income
Guidance(1)
|
Reported Net
Income or
Normalized
Net Income(1)
|
Q2 2024
|
$4,000,000
|
$4,232,663
|
$850,000
|
$952,986
|
$750,000
|
$890,725
|
Q3 2024
|
$7,000,000
|
$7,175,617
|
$1,000,000
|
$1,004,542
|
$900,000
|
$923,479
|
Q4 2024
|
$11,800,000
|
Due April 30,
2025
|
$2,750,000
|
Due April 30,
2025
|
$2,550,000
|
Due April
30, 2025
|
Note:
|
1. Adjusted
EBITDA and normalized net income are non-IFRS measures. See
"Non-IFRS Financial Measures" below.
|
Graduation from TSXV Tier 2 to TSXV Tier 1
SSC announces that it has graduated from TSXV Tier 2 to TSXV
Tier 1 status. With strict criteria and the requirement to
demonstrate strong working capital and historical revenue, this
graduation edifies SSC's progress and advancement as a TSXV
issuer.
In connection with SSC's graduation to Tier 1, SSC's escrowed
securities held in surplus security escrow and value security
escrow pursuant to TSXV policies in connection with SSC's
qualifying transaction will now be released in accordance with the
applicable Tier 1 escrow release schedules.
About Simply Solventless Concentrates Ltd.
SSC is a public company incorporated under the Business
Corporations Act (Alberta).
SSC's mission is to provide pure, potent, terpene-rich ready to
consume cannabis products to discerning cannabis consumers. For
more information regarding SSC, please see
www.simplysolventless.ca.
Notice on Forward Looking Information
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable securities laws. Any
statements that are contained in this press release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by
terms such as "may", "should", "anticipate", "will", "estimates",
"believes", "intends", "expects", "projected", "approximately" and
similar expressions which are intended to identify forward-looking
statements. More particularly and without limitation, this press
release contains forward looking statements concerning SSC's
expected financial results for Q4 2024, the synergies expected from
the CannMart and ANC transactions, reducing expenses during Q1 2025
and SSC's expected growth, results of operations and performance.
SSC cautions that all forward-looking statements are inherently
uncertain, and that actual performance may be affected by a number
of material factors, assumptions and expectations, many of which
are beyond the control of SSC, including expectations and
assumptions concerning SSC, the timing and market acceptance of
products, competition in SSC's markets, SSC's reliance on
customers, fluctuations in interest rates, SSC's ability to
maintain good relations with its customers, employees and
other stakeholders, changes in law or regulations, SSC's ability to
protect its intellectual property, as well as other risks and
uncertainties, including those described in SSC's filings available
on SEDAR+ at www.sedarplus.ca. The reader is cautioned that
assumptions used in the preparation of any forward-looking
statements may prove to be incorrect. Events or circumstances may
cause actual results to differ materially from those predicted as a
result of numerous known and unknown risks, uncertainties and other
factors, many of which are beyond the control of SSC. The reader is
cautioned not to place undue reliance on any forward-looking
statements. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this press release are
expressly qualified by this cautionary statement.
The forward-looking statements contained in this press release
are made as of the date of this press release, and SSC does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly
required by securities law.
Future Oriented Financial Information
This press release contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about gross revenue, adjusted EBITDA and normalized net
income of SSC, which are subject to the same assumptions, risk
factors, limitations and qualifications as set forth in the above
paragraphs. FOFI contained in this document was approved by
management as of the date of this document and was provided for the
purpose of providing further information about SSC's future
business operations. SSC and its management believe that FOFI has
been prepared on a reasonable basis, reflecting management's best
estimates and judgments, and represent, to the best of management's
knowledge and opinion, the SSC's expected course of action.
However, because this information is highly subjective, it should
not be relied on as necessarily indicative of future results. SSC
disclaims any intention or obligation to update or revise any FOFI
contained in this document, whether as a result of new information,
future events or otherwise, unless required pursuant to applicable
law. Readers are cautioned that the FOFI contained in this document
should not be used for purposes other than for which it is
disclosed herein. Differences in the timing of capital expenditures
or revenues and variances in production estimates can have a
significant impact on the key performance measures included in
SSC's guidance. SSC's actual results may differ materially from
these estimates.
Non-IFRS Financial Measures
This press release includes references to "adjusted EBITDA" and
"normalized net income", which are not defined under International
Financial Reporting Standards (IFRS). The intent of these non-IFRS
measures is to provide additional useful information to investors
and analysts. These non-IFRS measures do not have a standardized
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other entities. As
such, these non-IFRS measures should not be considered in isolation
or used as a substitute for measures of performance prepared in
accordance with IFRS.
Adjusted EBITDA is calculated as income before interest, taxes,
depreciation and amortization expenses, and share compensation
expenses, minus any gain on settlement or disposal. Adjusted EBITDA
is considered as a useful measure by management of SSC to
understand the profitability of SSC excluding the effects of
capital structure, taxation and depreciation, but may not be
appropriate for other purposes. Adjusted EBITDA is not defined
under IFRS and therefore should not be considered an alternative
to, or more meaningful than, income (loss) and comprehensive income
(loss).
The following table reconciles net income (loss) to Adjusted
EBITDA:
|
Three months
ended
|
Nine months
ended
|
|
Sept 30,
2024
$
|
Sept 30,
2023
$
|
Sept 30,
2024
$
|
Sept 30,
2023
$
|
|
|
|
|
|
Net and comprehensive
(loss) income
|
-424,446
|
121,216
|
2,147,780
|
2,041,282
|
Add
(deduct):
|
|
|
|
|
Depreciation and
amortization
|
27,409
|
12,950
|
53,877
|
35,304
|
Net interest (income)
expense
|
53,654
|
66,520
|
154,423
|
261,864
|
Gain on
settlement
|
(15,212)
|
-
|
(446,883)
|
-
|
Gain on
disposal
Restructuring
Costs
|
-
225,348
|
0-
-
|
-
225,348
|
(353,833)
-
|
Share compensation
expense
|
288,897
|
69,982
|
434,554
|
182,258
|
Adjusted
EBITDA
|
1,004,542
|
270,008
|
2,569,099
|
2,166,875
|
Normalized net income is calculated as net income less any gain
on settlement or disposal, plus share compensation expense.
Normalized net income is considered as a useful measure by
management of SSC to understand the profitability of SSC excluding
the effects of certain non-operating items.
The following table reconciles net income (loss) to normalized
net income:
|
Three months
ended
|
Nine months
ended
|
|
Sept 30,
2024
$
|
Sept 30,
2023
$
|
Sept 30,
2024
$
|
Sept 30,
2023
$
|
|
|
|
|
|
Net and comprehensive
(loss)
income
|
424,446
|
121,216
|
2,147,780
|
2,041,282
|
Add
(deduct):
|
|
|
|
|
Gain on
settlement
|
(15,212)
|
-
|
(446,883)
|
-
|
Gain on
disposal
Restructuring
costs
|
-
225,348
|
-
-
|
-
-
|
(353,833)
-
|
Share compensation
expense
|
288,897
|
69,682
|
434,554
|
182,258
|
Normalized Net
Income
|
923,479
|
190,898
|
2,360,799
|
1,869,707
|
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities in any
jurisdiction.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Simply Solventless Concentrates Ltd.